Overview
- NCDEX announced RAINMUMBAI as a SEBI‑approved weather futures product that will begin trading on June 1, 2026, after a formal launch event on May 29.
- The contract is cash‑settled against a Cumulative Deviation Rainfall index that measures rainfall versus a 1991–2020 long‑period average using IMD readings from Santacruz and Colaba.
- Technical rules are published by NCDEX and include a tick size of 1 mm, a lot multiplier of Rs 50 per mm, trading through the June–September monsoon window, and daily price limit slabs.
- NCDEX and IIT‑Bombay designed the product to target farmers, construction firms, power utilities, logistics companies and banks with farm exposure so they can hedge revenue or loan risks tied to Mumbai rains.
- The contract removes field loss checks by settling on objective weather data, which could speed payments, create a new tradable climate‑risk asset in India and raise questions to watch about market uptake and basis risk between measured rainfall and actual losses.